• Applicability of GST rate

We issue tax invoices for outward supply of our product and its installation separately to a same customer. We charge GST @ 12% on our product and 18% on installation component separately because installation is very occasional in our business and only a few customers demand it from us. However gst department is of the view that we are issuing invoices for mixed supply and thus applicable rate should be 18% on entire transaction.How should we defend our case.
Asked 6 years ago in Taxation

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9 Answers

Dear Sir,

GST Tax Rates on some common items

Download GST Rate List PDF : Click Here

Tax Rates

Products

5%

Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal , Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab

12%

This includes computers and processed food

18%

Hair oil, toothpaste and soaps, capital goods and industrial
intermediaries are covered in this slab

28%

Luxury items such as small cars , consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks , High-end motorcycles  are included here.

Though edible items like sugar, tea and coffee are included in the 5% slab, milk does not attract any tax under the new GST regime. The idea behind this is to ensure that basic food items are available for everyone but instant food is kept out of this category.

  • Basic household items like toothpaste and hair oil, which currently attract 28% tax, will be taxed at 18% only.
  • Sweets will also be taxable at 5%.
  • Tax rates on coal has also been reduced from 11.69% to just 5% in order to relieve the pressure on power industries.
  • GST also gives a major push to domestic industries as they will be able to procure seamless input credit for capital goods. Make in India campaign is set to flourish after this reform.

GST Rates on Goods

The government has proposed a 4-tier tax structure for all goods and services under the slabs- 5%, 12%, 18% and 28%. After the recent revision of GST rates, these are the commodities that fall under the four tax slabs along with those that do not attract any tax. Please note that only those commodities are included in this list whose rates have been revised in various council meetings.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

See you are providing two different supplies that is material and services of installation these two are different services and for same invoices are issued separately so it cannot be considered as mixed supply so in case a notice is issued based on two different services you can contest.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

See the supply is not naturally bundled in your case as the client may or may not take services ,also you are not selling it as bundled service so there is good chance to defend the case

 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

If the installation service is not mentioned in packages offered by you or not done on regular basis but occasionally on demand of customers, mixed supply criteria shall not be applicable and gst would be applicable separately for supplies and services.

This would be your defence. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

Where the product supply accompanied with installation is mixed supply, single GST will charge on whole i.e that maximum rate and not separate rates.

IN cases where, installation service not provided, 12%. So this differentiation shall be fill when GST deducted that installation provided or not.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

If the applicable gst for installation and product ate different then you can very well issue different gst rates and invouces for the same

Prashant Nayak
Advocate, Mumbai
34638 Answers
249 Consultations

Dear

Mixed supply criteria doesn't apply in your case because you are providing sale of product(Goods) and Service of Installation which are two different type of taxable items one is goods and other is services.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

You can produce the documents under which you have clearly described the amount collected towards GST and give a reply through your auditor or advocate about this and ge the issue clarified or prefer an appeal.

 

T Kalaiselvan
Advocate, Vellore
90148 Answers
2504 Consultations

You are clear in your thoughts that this may not be applicable in your case, hence with the support of documentary evidences, you may prefer to issue a proper reply notice and also take up this with the appellate authority if  your pleas are unheard.

T Kalaiselvan
Advocate, Vellore
90148 Answers
2504 Consultations

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